The Horrors of FSBO

Many home sellers have considered skipping the real estate agent altogether to save on commission costs, but very few have actually succeeded in seeing those savings. There are a lot of good reasons, from bad marketing, incessant inconveniences to costly paperwork mistakes. In honor of Halloween, let's examine a few of the horror stories that For Sale By Owner sellers inevitably encounter.

The Daunting Task of Marketing Your Home

It takes more than a “For Sale” sign in your front yard to make buyers notice your home. According to the National Association of Realtors, 95% of buyers use the Internet in their home search. This means that online marketing — starting with listing your home on the local listings database, sharing your listing to dozens of social media platforms, and advertising your listing on numerous websites with a global audience — is essential to selling your home.

This is where it starts getting expensive: yard signs, newspaper ads, brochures, high-quality photographs, and a professional-looking website — things real estate agents have at their disposal — are your responsibility to finance and maintain when you have to do your home’s marketing yourself. Ca-Ching.

The Ghosts of Lost Profits

Even after all that marketing, FSBO sellers don’t actually make more money. In fact, many lose money. The research backs it up: the average home sold with an agent sells for $240,000. FSBO homes, however, sell for only $185,000. What you could save in commission you lose by pricing your home incorrectly based on outdated or incorrect data or skimping on the marketing or negotiating poorly. When you plant a FSBO sign in the yard, every buyer on the planet has one thought in mind: Desperate buyer will accept a low-ball offer. Ca-Ching. Ca-Ching.

The Mountains of Paperwork

Understanding the paperwork involved in a real estate transaction is one of the biggest challenges confronting a For Sale By Owner. After all, the contract isn’t just an agreement about the price; it also includes contingencies (like those for home inspections and financing), the closing date, and other important terms. Without an Agent, Sellers Can Make Costly Mistakes The paperwork involved in a home sale can be complicated and full of legal jargon. An oversight could mean a costly mistake or even a lawsuit. Real estate agents, however, have the knowledge and understanding to take care of all the necessary disclosures. Ca-Ching. Ca-Ching. Ca-Ching.

Don’t Become the Next FSBO Horror Story

Yes, commission is a sizable chunk of change. But so are the hidden fees and lost profits, not to mention the added stress, that come with selling a home by yourself. The best way to save money, save time, and save headaches is to work with an experienced real estate professional, like me! I am here to help! Give me a call at 919-308-2292 for a complimentary home selling consultation.